TMI Blog2014 (3) TMI 890X X X X Extracts X X X X X X X X Extracts X X X X ..... ar Central Co-operative Bank Ltd. [2005 (8) TMI 28 - SUPREME COURT OF INDIA] - any income derived from funds so place arose from the business carried on by it and the assessee had not, by reason of section 80P(2)(a)(i), to pay income-tax – Decided against Revenue. - ITA No. 322/PNJ/2013 - - - Dated:- 6-3-2014 - Shri P. K. Bansal And Shri D. T. Garasia,JJ. For the Appellant : Shri Nishant K, Ld. DR. For the Respondent : Shri S. V. Halbhavi, CA. ORDER Per: D. T. Garasia. This appeal has been filed by the department against the order of CIT(A) Belgaum, dated 14th August,2013 for the A.Y.2004-05. 2. The following grounds are raised in this appeal: (1) The learned CIT(Appeals) erred in holding that the co-ope ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iness. The Assessing Officer was of a view as per provisions of Section 80P(2)(a)(i), deduction is available to a cooperative society carrying on the business of banking or providing credit facilities to its members and as per the bye laws of the Co-operative Societies, the Co-operative Societies can accept deposit only from its members. The AO noted that a Co-operative Societies will not come under the purview of the meaning of banks. Hence, the Assessing Officer concluded that the income chargeable to tax had escaped assessment and accordingly the deduction u/s. 80P(2) (a) (i) was rejected. 4. The matter carried to CIT(A) and CIT(A) has allowed the deduction by observing as under: 5. I have carefully considered the facts of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tate Co-operative Bank Ltd. 5.1 The Assessing Officer has clearly erred in not considering the appellant co-operative bank as a Urban Co-operative bank and also by treating it only as a co-operative society engaged in the business of providing only credit facilities. Respectfully following the aforesaid decision of the Hon ble Supreme Court, I hold that the appellant co-operative bank s income from Govt. securities as income from banking activity and therefore, deduction is allowable u/s 80P(2)(a)(i) in respect of income for A.Y. 2004-05 derived from the funds invested in Govt. securities. 5. We have heard the rival contention of both the parties. Looking to the facts and circumstances of the case, we find that that the assessee has ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
